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## Apply for Adjustable-Rate Mortgage

To apply for an Adjustable-Rate Mortgage (ARM) loan:1. Download and read the Consumer Handbook on Adjustable-Rate Mortgages.

2. Read this Adjustable-Rate Mortgage disclosure.

3. Read Mohave State Bank’s Privacy Policy.

4. Click the acknowledge and continue buttons at the bottom of this page to be directed to the home loan application page.

#### Adjustable-Rate Mortgage (ARM) Disclosures

PLEASE READ AND CLICK ACKNOWLEDGE AND CONTINUE BUTTONS AT THE BOTTOM OF THIS PAGE TO BE DIRECTED TO THE HOME LOAN APPLICATION PAGE.

These disclosures describe some of the features of an adjustable rate mortgage (“ARM”) loan program currently offered by lender in which you have expressed an interest. This program may be discontinued or changed in whole or part at any time at lender’s option. Disclosure forms on our other ARM programs are also available to you upon request. This disclosure is not a contract and does not constitute a commitment by the Lender to make a Loan to you.

#### Conforming 3/1 LIBOR ARM Disclosure

(Caps: 2% initial / 2% subsequent / 6% lifetime)

NATURE OF AN ADJUSTABLE RATE PRINCIPAL DWELLING SECURED LOAN.

The type of Loan you have expressed interest in is called an Adjustable Rate Mortgage, or “ARM”. This means that the interest rate varies in relation to changes (increases or decreases) in an interest rate index. Interest rate changes may cause changes in scheduled payments.

YOUR INTEREST RATE.

Index. Beginning with the first Change Date, your interest rate will be based on an Index. The “Index” is the average of interbank offered rates for one-year U.S. dollar-denominated deposits in the London market (“LIBOR”), as published in The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the “Current Index.” If the Index is no longer available the Lender will choose a new Index, which is based on comparable information.

DETERMINING YOUR INTEREST RATE.

Your interest rate will be determined by adding the index to the margin and rounding the total to the nearest one-eighth of one percentage point (0.125%), unless your interest rate “caps” limit the amount of change in your interest rate. The date on which your interest rate can be adjusted is called the “Change Date”. The first Change Date will occur on the 36th payment due date. Subsequent Change Dates will occur every twelve months thereafter. Your interest rate cannot increase or decrease more than two percentage points (2.0%) at the first Change Date, or more than two percentage points (2.0%) at any subsequent Change Date. Your interest rate cannot increase more than six percentage points (6.0%) over the life of your Loan, and cannot decrease below the margin. You should ask us for the current interest rate and margin value.

YOUR PAYMENTS.

Your payments will be determined by the interest rate, the loan balance and the remaining loan term. Your payments will be payable monthly. After the initial three-year fixed rate period, your payment can adjust once every twelve months based on changes in the interest rate. Any increase in the interest rate will take the form of a HIGHER payment amount. Your new payment amount will be due on the first monthly payment date after a Change Date. In any event, if on the Maturity Date you still owe amounts on your Loan, you will pay those amounts in full on that date.

ADDITIONAL FEATURES OF THIS ADJUSTABLE RATE MORTGAGE.

Interest-only option: This loan program does not include an interest-only feature.

Prepayment fee option: This loan program does not include a prepayment fee option.

Assumption option: Someone buying your principal dwelling will not be allowed to assume the remaining balance of your Loan.

Conversion option: This adjustable-rate mortgage may not be converted to a fixed interest rate.

Demand feature: This obligation does not contain a demand feature.

Examples: To give you an example of how this loan program would work for a 30-Year $10,000 loan:

1. These are margins we have used recently; your margin may be different.

2. The Index value as of July 19. 2010 is 1.117%

*THE MONTHLY PAYMENT MAY INCREASE OR DECREASE SUBSTANTIALLY.

The above examples calculate the Maximum Interest Rate and resulting Maximum Payment based on the following assumptions:

CALCULATING YOUR PAYMENTS FOR A 30-YEAR LOAN.

To see what your payments would be based on the Initial Interest Rate (from the tables above), divide your desired loan amount by $10,000; then multiply the result by the Initial Monthly Payment (from the tables).

Example: The Initial Monthly Payment for a loan amount of $150,000 with a 2.75% margin would be: $150,000 divided by $10,000 = 15; 15 x $59.96 = $899.40 per payment.

NOTICE OF INTEREST RATE AND PAYMENT ADJUSTMENTS.

You will be notified in writing at least 25 but no more than 120 days before the due date of a payment at a new level due to an interest rate adjustment. If an interest rate adjustment occurs and does not affect your payment amount, you will be notified once each year of any such interest rate adjustment made to your Loan. These notices will contain information, as applicable, about:

1) The current and prior interest rates.

2) The Index values upon which the current and prior interest rates are based.

3) The extent to which we have foregone any increase in the interest rate, if any.

4) The contractual effects of the adjustment, including the payment due after the adjustment is made, and a statement of the loan balance.

5) The payment, if different from the payment referred to in paragraph 4 of this section that would be required to fully amortize your Loan at the new interest rate over the remainder of your Loan term.

#### Conforming 5/1 LIBOR ARM Disclosure

(Caps: 2% initial / 2% subsequent / 6% lifetime)

NATURE OF AN ADJUSTABLE RATE PRINCIPAL DWELLING SECURED LOAN.

The type of Loan you have expressed interest in is called an Adjustable Rate Mortgage, or “ARM”. This means that the interest rate varies in relation to changes (increases or decreases) in an interest rate index. Interest rate changes may cause changes in scheduled payments.

YOUR INTEREST RATE.

Index. Beginning with the first Change Date, your interest rate will be based on an Index. The “Index” is the average of interbank offered rates for one-year U.S. dollar-denominated deposits in the London market (“LIBOR”), as published in The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the “Current Index.” If the Index is no longer available the Lender will choose a new Index, which is based on comparable information.

DETERMINING YOUR INTEREST RATE.

Your interest rate will be determined by adding the index to the margin and rounding the total to the nearest one-eighth of one percentage point (0.125%), unless your interest rate ”caps” limit the amount of change in your interest rate. The date on which your interest rate can be adjusted is called the “Change Date”. The first Change Date will occur on the 60th payment due date. Subsequent Change Dates will occur every twelve months thereafter. Your interest rate cannot increase or decrease more than two percentage points (2.0%) at the first Change Date, or more than two percentage points (2.0%) at any subsequent Change Date. Your interest rate cannot increase more than six percentage points (6.0%) over the life of your Loan, and cannot decrease below the margin. You should ask us for the current interest rate and margin value.

YOUR PAYMENTS.

Your payments will be determined by the interest rate, the loan balance and the remaining loan term. Your payments will be payable monthly. After the initial five-year fixed rate period, your payment can adjust once every twelve months based on changes in the interest rate. Any increase in the interest rate will take the form of a HIGHER payment amount. Your new payment amount will be due on the first monthly payment date after a Change Date. In any event, if on the Maturity Date you still owe amounts on your Loan, you will pay those amounts in full on that date.

ADDITIONAL FEATURES OF THIS ADJUSTABLE RATE MORTGAGE.

Interest-only option. This loan program does not include an interest-only feature.

Prepayment fee option. This loan program does not include a prepayment fee option.

Assumption option. Someone buying your principal dwelling may not assume the remaining balance of your Loan based upon the original terms.

Conversion option. This adjustable-rate mortgage may not be converted to a fixed interest rate.

Demand feature. This obligation does not contain a demand feature.

Examples: To give you an example of how this loan program would work for a 30-Year $10,000 loan:

1. These are margins we have used recently; your margin may be different.

2. The Index value as of July 19,2010 is 1.117%

*THE MONTHLY PAYMENT MAY INCREASE OR DECREASE SUBSTANTIALLY.

The above examples calculate the Maximum Interest Rate and resulting Maximum Payment based on the following assumptions:

NOTICE OF INTEREST RATE AND PAYMENT ADJUSTMENTS.

You will be notified in writing at least 25 but no more than 120 days before the due date of a payment at a new level due to an interest rate adjustment. If an interest rate adjustment occurs and does not affect your payment amount, you will be notified once each year of any such interest rate adjustment made to your Loan. These notices will contain information, as applicable, about:

1) The current and prior interest rates.

2) The Index values upon which the current and prior interest rates are based.

3) The extent to which we have foregone any increase in the interest rate, if any.

4) The contractual effects of the adjustment, including the payment due after the adjustment is made, and a statement of the loan balance.

5) The payment, if different from the payment referred to in paragraph 4 of this section that would be required to fully amortize your Loan at the new interest rate over the remainder of your Loan term.

ACKNOWLEDGMENT

I hereby acknowledge receipt of a copy of this Disclosure, and attached exhibits (if any are referenced), along with a copy of the Consumer Handbook on Adjustable Rate Mortgages. I further acknowledge that I must qualify for the proposed loan, and that if I do not qualify, my loan will not be approved to close.